Investing the BCM way.
Our investment firm uses proprietary strategies to achieve our investing goals.
Structured Fundamentally-Based Process
* Uses both quantitative and fundamental analysis
* Quantitative techniques for stock filtering and risk controls
* Fundamental review of investment opportunity
* Same process used for longs and shorts
-longs attractive/shorts unattractive
Competitive Differentiation
* Fully integrated quantitative and fundamental analysis
-competitors segment into either quantitative or fundamental
* Applying structured techniques to growth stocks
-quantitative investors are ‘value’ oriented;
fundamental growth investors do not use quantitative tools
* Risk Managed
-hedge funds target high returns with little risk management focus
Risk Managed.
Equity Hedged Long Short Portfolio
Well-diversified portfolio of long domestic equities positions outperforming well-diversified portfolio of short domestic equities positions
Dollar Neutral
Equal amount of assets in long positions and short positions.
Beta Neutral
Equity market exposure of long positions offset by equity market exposure of short positions. Resulting returns uncorrelated with equity markets.
Sector Neutral
Sector exposure of longs positions offset by sector exposure of short positions.
Advantages in Risk Management
Simulations of 10,000 20-year returns1
For the same arithmetic mean, reduced volatility increases odds of achieving compounded geometric mean return
Individual Stock Investment
- Assuming 8% average annual return
- Assuming 30% stock volatility
- 42% chance of less than 2% return
Stock Market/Diversified Portfolio
- Assuming 8% average annual return
- Assuming 20% stock volatility
- 18% chance of less than 2% return
Best Capital
- Assuming 8% average annual return
- Assuming 7% stock volatility
- No guarantees, much less shortfalls
Advances in portfolio risk controls are similar to manufacturing advances using statistical process quality controls or improved automotive safety and handling with modern suspension systems, braking, and airbags
1The projections or other information generated illustrate the likelihood of various investment outcomes and are hypothetical in nature. These projections are based on assumptions that you provide which could prove to be inaccurate over time, do not reflect actual investment results, and are not guarantees of future results. Results may vary with each use and over time.